E-DRUG: Pakistan Supreme Court orders survey on hike in drug prices (2)
-----------------------------------------------------------------------
Dear E-druggers,
The Honorable Chief Justice of Pakistan Mr Iftikhar Muhammad Chaudary seems to have been provided with incorrect information by some people with vested interest.
The Fact of the matter is this that the prices of medicine in India are not same for both Multinational and Local companies in all cases. In India prices of only 74 salts and their brands or formulations are controlled under DPCO. Further to that the National Price Control Authority or NPPA in India is working under the ministry of Chemicals and Fertilizers unlike Pakistan where prices are also controlled by the Ministry of Health where no single person understands the business and manufacturing cost. In Pakistan all salts and their brands are under price control. It is also important to note that if one compares drug prices between India and Pakistan apple to apple than one will find out that around 75% of drugs in India are costlier than Pakistan where as 20% to 25% drugs in Pakistan are expensive compared to India.
One particular reason for the lower prices in India is that the Raw Material to manufacture drugs is produced in India itself where as in Pakistan the pharma industry is bound to import each and every ingredient of manufacturing from abroad even the ink for printing of labels is also imported. As per information of 2000, India was producing 185 of the raw materials produced in whole world. One should also take into account the exchange rate of Indian and Pakistani Rupee where 1.5 Pak rupee is equal to 1 Indian Rupee.
Another important thing to note is that as for as the prescription trend of drugs in Pakistan is concerned the figures suggest that at the given time Local industry has a share of 55% in Rs Value, where as in case of prescription it is reported to be around 70 to 80%. So this impression that doctors are prescribing more multinational products is in correct. The multinational share is confined mainly to the prescription of research products that the local industry is not able to manufacture due to it being only a repacking/formulation industry only.
Another aspect to be taken into account is the quality of drugs the case in point is the recent sou moto action of the Honorable Chief Justice regarding the sub standard supply of drugs to prestigious institute of the country that is Pakistan Institute of Medical Sciences. The drugs declared sub standard belongs to three local manufacturers including M/s Zafa Pharmaceutical who claims to be the first Multinational of Pakistan.
We should understand that we are talking about medicinal drugs that are chemicals to save lives and they should be manufactured under highest quality standards. But the maintenance of highest quality requires huge expenses and one who spends the money to manufacture drugs of superior quality deserves better prices. and Cutting down of prices will result in decreased quality of drugs as is evident in case of majority of locally manufactured drugs.
Instead of just criticizing the Multinationals and finding the ways and means to force the pharma industry to reduce the prices the Ministry of Health should work to provide health care facilities to the masses and find ways to lessen the price burden on the patients by finding ways to subsidies the drug prices.
For dealing with Drugs an Independent Drug Regulatory Authority should be established as already approved and decided by the cabinet in 2002 and which is now delayed for about 5 years. The authority once established shall focus on improving the pharmaceutical sector to produce high quality drugs so to enhance the exports to help grow the economy.
Regards
Nadeem Hussain Alamgir
Sardar N.H.Alamgir
nadeemalamgir@yahoo.com